If you’re a busy professional planning to buy your first car, you’re probably looking forward to the freedom of driving yourself to work, visiting your family whenever you want, taking weekend road trips with friends, or spending a Sunday alone enjoying the scenic views of rolling green tea plantations and the cool highland weather in Limuru.
But there is another question you need to ask before you get carried away with the excitement. Can you afford the car without putting pressure on everything else you are trying to achieve with your money?
Here are 5 things you need to know before signing on the dotted line.
1. Know what you can afford
Don’t let the monthly car payment take up so much of your income that you struggle to pay for everything else.
Look beyond the loan payment. Budget for insurance, fuel, maintenance, taxes and other running costs.
Also read: Why NCBA Is the Ideal Growth Partner for Your Business
2. Understand the cost of the loan
The amount you pay upfront, the loan term and the interest rate will all affect how much the car eventually costs you.
A larger down payment can mean lower monthly payments and less interest over the life of the loan. A shorter loan term usually means higher monthly payments, but you pay less interest overall.
Also look at the Annual Percentage Rate (APR), which reflects the cost of borrowing, including interest and certain fees.
You can visit https://www.costofcredit.co.ke/ to estimate what you can comfortably afford.
3. Don’t rush to buy
It is easy to get excited when you find a car you like. But don’t go hunting for a car in a hurry.
Take time to decide what you actually need, research the model you want, compare prices, and understand its reliability, fuel consumption and maintenance costs.
4. Shop around for the loan
Don’t take the first loan offer you get.
Compare rates and terms from different lenders. Check for fees, charges and penalties, including what happens if you want to pay off the loan early.
The interest rate you qualify for can make a big difference to the total amount you eventually pay for the car.
5. Read before you sign
Before signing on the dotted line, read the loan agreement carefully.
Make sure you understand the interest rate, repayment period, monthly payment, payment due dates and any penalties for late payments or early repayment.
If there is something you don’t understand, ask. A car loan is a financial commitment, so make sure you know exactly what you are agreeing to before you sign.
If you are a busy professional looking for a car for your daily commute or a business owner looking to acquire a vehicle, fleet, machinery or other equipment, NCBA has asset finance solutions to help you get the assets you need while keeping your cash flow in check.
You can apply online, get conditional approval in as little as 15 seconds, and receive an offer letter in an average of 1.4 days. NCBA also offers flexible repayment terms, insurance financing and access to CarDuka, where you can browse vehicles, participate in auctions and apply for a car loan in one place.
For businesses, asset financing can cover commercial vehicles, trucks and pickups, tractors, construction equipment, medical equipment and other business assets, with financing structured around your cash flows.
Explore NCBA Asset Finance today and find a financing solution that works for you: https://ncbagroup.com/ke/asset-finance/
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CEO & Co-Founder, Abojani Investment
Robert Ochieng is a visionary entrepreneur and the co-founder of Abojani Investment, a leading financial education platform in Kenya that has empowered over 20,000 Africans to embark on their investment journeys. As CEO, he has demonstrated an unwavering commitment to financial literacy, successfully demystifying money and investments and making them accessible and relevant to individuals from all walks of life.
Running Thriving Investment Communities
Robert’s influence extends well beyond Abojani Investment’s core offerings. He has actively fostered a sense of community by running investment forums and groups with a vast following of over 300,000 Africans. These communities provide a safe space for individuals to exchange ideas, share experiences, and support each other on their investment journeys.
Vision for the Future
As co-founder of Abojani Investment, Robert envisions a financially empowered Africa. He strives to expand the reach of his financial education initiatives, enabling millions more to gain the knowledge and confidence needed to achieve their financial goals. His vision is to create a society where every individual has the tools and understanding to build lasting wealth and prosperity.
Professional Background
Robert Ochieng is a highly accomplished CEO at the helm of Abojani Investment, an investment and advisory firm in Kenya. He is a seasoned professional with over 14 years of experience in IT, Finance, and leadership.
His career includes key roles at prominent institutions such as Equity Bank, Gulf African Bank, Guaranty Trust Bank (GTBank) and Airtel.
Robert’s expertise has also been sought after by the National Treasury for consultancy on planning and budgeting systems, showcasing his exceptional knowledge and skills in the field. Passionate about driving meaningful conversations and collaborations between academia, industry, and the public sector, Robert actively engages in research projects focusing on digital transformation within the financial services sector. With his visionary leadership and strategic insights, Robert Ochieng continues to make a significant impact in the business world.
